Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Israeli Channel 13: The Iranian nuclear program cannot be destroyed with missiles, even if we spend another year attacking it alongside the Americans.
Over 30 casualties in a suicide bombing that targeted the Mar Elias Church in Damascus, Syria.
Iranian Shura Council recommends the closure of the Hormuz Strait and leaves the decision up to the Iranian National Security Council.
IRGC Commander Major General Mohammad Pakpour: As time passes, the people's solidarity increases, which is a divine blessing
IRGC Commander Major General Mohammad Pakpour: The Iranian Revolution Guard Corps' aerospace operations will not stop
Russian Foreign Ministry: IAEA Director General Rafael Grossi must ensure that an objective report is presented at the special session of the International Atomic Energy Agency (IAEA)
Russian Foreign Ministry: The UN Security Council must respond to the US attacks on Iran
Russian Foreign Ministry: We strongly condemn the US strikes on Iran, calling the decision irresponsible
Iranian Red Crescent: Three personnel martyred, 29 injured in Israeli aggression
IRGC: We have identified and monitored the departure points of the US aircraft that carried out the aggression

US Federal Reserve ups interest rates by 75 basis points

  • By Al Mayadeen English
  • Source: Agencies
  • 22 Sep 2022 11:33
  • 1 Shares
3 Min Read

This would be the fifth increase this year.

  • x
  • US Federal Reserve ups interest rates by 75 basis points
    Fed Chair Jerome Powell declared a higher anticipated annual inflation rate for the year

The US Federal Reserve’s Federal Open Market Committee (FOMC) announced on Wednesday it was raising the federal funds rate by 75 base points to between 3% and 3.25%, which would be the third increase in a row after the central bank decided in April to increase rates to attempt and keep inflation under control.

On Wednesday, Fed chair Jerome Powell said it would sometime become appropriate to slow the rate of interest rate increases; the median forecast showed the bank expects to increase interest rates to at least 4.4% by the end of 2022. However, it could continue to rise, hitting 5% in 2023.

Powell showed confidence that the central bank was heading to a point where it will be sufficiently restrictive to take inflation back to 2%. However, he also declared a higher anticipated annual inflation rate for the year: 5.4%, up from the previous estimate of 5.2%.

Still, the Bureau of Labor Statistics' recent monthly Consumer Price Index (CPI) report has shown high inflation and August's commodity prices to be 8.3% higher than a year before. The Fed’s measures have had little effect on inflation, as per the report, which remains at a 40-year high point, and a more substantial rate hike expectation by the central bank has kept Wall Street stocks down for weeks.

Related News

Hezbollah condemns US aggression on Iran, warns of regional escalation

Iran holds the initiative after nuclear strikes, Shamkhani says

Despite the fact that higher interest rates are supposed to limit intra-bank loans and thus create new money, the Economic Policy Institute found in an April study that corporate profits accounted in the last two years for 54% of inflation in the US. This means that the problem is price speculation, not overeager lenders.

Warnings have also been issued by economists about more rate hikes leading to slowing the economy and possibly generating a deeper recession and an unemployment increase, although the US has been in a recession since July, according to Commerce Department statistics.

The Summary of Economic Projections from the Fed showed unemployment rate is forecast to rise next year to 4.4% from 3.7%, and the growth in the US gross domestic product (GDP) is expected to be just 0.2% for the present year.

It is worth noting that the economic situation which is affecting the financial standpoints of American families and businesses is burdening US President Joe Biden's popularity, which will affect his chances of winning the midterm congressional elections which will take place in early November.

Fed leaders believe that their job is not just to slow demand in the economy, but also to strengthen the public’s trust in the central bank because if people lose trust in the government’s capacity to keep inflation under control, the Feds will not be able to impose further increases in case the crisis develops unexpectedly.

  • Federal reserve
  • US inflation
  • Consumer Price Index
  • United States

Most Read

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

  • MENA
  • 17 Jun 2025
Rescue team work at the site where a missile launched from Iran struck Tel Aviv, Israel, Monday, June 16, 2025 (AP)

Wave 12 of Operation True Promise 3 launched, Sejjil deployed: IRGC

  • Politics
  • 18 Jun 2025
Israeli workers survey the site where a missile launched from Iran struck in Haifa on Sunday, June 22, 2025. (AP)

True Promise 3, wave 20: 40 missiles launched, Kheibar-Shekan in first

  • Politics
  • Today
Iran launches missile barrage to Tel Aviv, casualties reported

True Promise 3, wave 14: Tel Aviv targeted, casualties reported

  • Politics
  • 19 Jun 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Iran UN Ambassador Amir Saeid Iravani addresses a United Nations Security Council meeting, Friday, June 20, 2025. (AP)
Politics

Iran demands urgent UN Security Council session over US airstrikes

CIA Director John Ratcliffe, testifies before a hearing April 18, 2023, on Capitol Hill in Washington (AP/Manuel Balce Ceneta)
US & Canada

Trump aides pushed war on Iran with Mossad-fed intel, ignoring dissent

This photo released on Nov. 5, 2019, by the Atomic Energy Organization of Iran shows centrifuge machines in the Natanz uranium enrichment facility in central Iran. (Atomic Energy Organization of Iran via AP, File)
Politics

Iran: Minor damage to nuclear sites after US attack, no radiation

The U.S. Capitol, on June 5, 2025, in Washington. (AP)
Politics

US lawmakers condemn Trump’s strikes on Iran; MAGA base frustrated

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS